Step 1: Assessing a Possible Class Action
Knowing if You Can Bring a Class Action Lawsuit
Have you ever been charged a $25 late fee because you were a few days late with a $10 payment?
Have you sent in a rebate form for a product, only to wait months and months before actually receiving a check?
Have you ever stayed at a hotel, only to find out at check-out that the hotel was charging you an "energy use" fee or some other charge that you didn't anticipate and that didn't make sense to you?
The truth is that everybody has been the victim of illegal business practices. As just one example, a recent government investigation into New York City health clubs found that 96% of them were misleading consumers about their legal rights. That means that, if you were looking to join a health club, you would have less than a one-in-twenty chance of finding one that actually complied with the law.
Many people just assume that, because a big business is doing it, it must be legal. That's simply not the case. Businesses violate the laws for a variety of reasons. Sometimes, they count on people not knowing their rights or not wanting to spend the time or energy to get back a small amount of money. Sometimes, they don't know the law themselves and are breaking it unintentionally. Often, they know they're breaking the law, and they know they're going to be caught sooner or later. They just figure they'll still make bigger profits breaking the law, even if someone does eventually take them to court.
However, just because a large company is breaking the law, that doesn't automatically mean that a class action suit is proper.
[URL="http://www.classactionconnect.com/?q=page/class_actions_explained"]Class action suits[/URL] are usually appropriate only when a company has been violating the rights of or injuring a large number of people in the same (or very similar) way. One of the first things any class action lawyer will want to know when considering a case is whether it is possible to prove that the company has been breaking the law in a systematic way.
In the end, the best advice is to simply "trust your gut." If a business is acting in a way that seems unfair or just plain smells fishy, it is usually worth having an attorney look into it.
Deciding if You Want to Pursue a Class Action Lawsuit
Even if you realize that you might be the victim of an illegal practice and that a class action might be proper, that doesn't answer the most important questions: Is it worth bringing a class action, and how can you tell?
There are many reasons people decide to bring a class action suit. Some people realize that it would be too expensive to hire an attorney to bring an individual lawsuit, and decide class action are the only way to recover what they lost. Some people take pride in holding large company accountable for its misconduct and fighting for the rights of countless others who were taken advantage of. Still others believe class actions are a way in which they can personally make money.
All of these considerations are legitimate. However, just as the best class action attorneys are the ones that are fighting for what they believe in, the best class action plaintiffs are not doing it merely to make money. Indeed, while it is true that in most states, class action plaintiffs may be entitled to "incentive awards" in successful cases, those awards are in no way guaranteed. Also, it is legitimate for a defendant to question the motives of the class action plaintiff. If he or she is only trying to make a quick buck (as opposed to looking out for the interests of the class), the court could very well refuse to allow the case to proceed as a class action.
The role of the class action plaintiff (generally called the "class representative") is to work with the class action attorney to make sure that the interests of the other class members are being looked out for. In practical terms, that means that a good class action representative understands what the case is about and understands (and agrees with) the lawyer's strategy in fighting the case. The best class representatives want to know about the key developments in the case, including any settlement offers.
Being a class representative does not take as much time as being a plaintiff in an individual case, but there are things that class representatives should be prepared to do. Once a class action is filed, the defendant usually requires the class representative, with his or her lawyers, to respond to "written discovery." That means that they serve your attorneys with written requests for information, usually about your experience with the defendant, and for copies of relevant documents. Your lawyer will guide you through the process of responding. Also, you might be asked to take part in a deposition or testify at trial. A deposition is meeting, most often in a conference room, during which the defendant's lawyer is allowed to ask you questions under oath, with the questions and answers being written down by a court reporter. Unlike a trial, a judge is typically not present. Good class action lawyers will fully prepare you for your deposition or trial testimony.
Overall, if you believe in what you're fighting for, class actions are a great way to have a positive impact on society. Class actions have cleaned up entire industries, shut down corrupt companies, and recovered billions of dollars for injured victims. Personally, we're pleased to say that the vast majority of the class plaintiffs we have represented have both enjoyed and been proud of their involvement. Still, the most satisfied clients are the ones who best understand what the benefits and responsibilities of their involvement will be. It is therefore very important to find a good class action lawyer.